American Broadcasting Cos. v. Aereo, Inc.

Background

Television networks and broadcasters sued a company that, for a monthly fee, let subscribers watch over-the-air programs on their phones and computers. The company used thousands of small antennas, made a personal copy for each user, and streamed that copy a few seconds behind the live broadcast. The networks said the company had no license and was violating their right to control public performances. Lower courts denied an injunction, and the case reached the Court.

Reasoning

The Court considered whether the company itself performs and whether those performances are public. It relied on Congress' 1976 amendments aimed at bringing cable-like retransmission within the law. The majority found the company's centralized system closely resembled cable systems, and that transmitting the same program to many paying, unrelated subscribers is a public performance even when using user-specific copies. The Court concluded the company performs publicly, reversed the appeals court, and sent the case back for further proceedings.

Real world impact

The ruling means broadcasters can press infringement claims against services that stream live broadcast TV in this way, creating legal risk for similar startups. The decision is limited: it does not decide how the law applies to other technologies like cloud storage or remote DVRs, and the majority said fair use and Congress may shape future boundaries.

Dissents or concurrances

A strong dissent argued the company did not perform because subscribers, not the company, select and activate the streams. That dissent warned the ruling departs from a volitional-act approach and urged Congress, not the courts, to fix any legal gaps.